US sanctions on Chinese technology companies such as Huawei could threaten their future survival and delay 5G rollout across many countries.
Mobile subscriptions will recover strongly by 3.4 per cent in 2021, from a fall of just over two per cent this year, according to a new report from The Economist Intelligence Unit (The EIU).
Mobile revenue will also increase, as consumers continue to rely on connectivity for everything from business to shopping and entertainment.
The EIU added that growth would be strongest in Asia and the Middle East.
However, the picture is not all rosy.
The EIU said the sector faced substantial risks, including the US-China tech dispute.
US sanctions on Chinese technology companies such as Huawei could threaten their future survival and delay 5G rollout across many countries that rely on Chinese technology.
A new spate of lockdowns, meanwhile, could affect telecoms supply chains, raising prices and delaying shipments, product launches and 5G rollout plans.
Matt Kendall, The EIU principal analyst for telecoms and tech said: “The telecoms and technology sector will stage a recovery in 2021, but with so much uncertainty around, operators will have to prioritise investment that supports the increasing demand for data and protects network performance.
“Although governments and companies are keen to roll out 5G, they will have to make some tough choices in 2021 given the problems surrounding Huawei.”
Kendall said the shift in consumer habits during the pandemic would also present new opportunities.
“The popularity of online shopping and mobile gaming will help drive take-up of cloud and edge infrastructure. Digital investments are also becoming a priority for many companies, as they need to sustain the shift to remote working,” he added.
Originally published at nst